Capital Gains Tax - I wonder if they'll rebate any tax if negative growth?

[Kwaka14]

Saw this in the herald today and I'm way pleased the house is gone. I wonder if they'll provide a tax rebate if property values fall....

http://www.nzherald.co.nz/nz/news/ar...ectid=10576312

[carver]

it wont work, cause they will budget on it, then when thing sturn to shit they are out of money, bit like building consents

[James Deuce]

They do that and Labour will be back in next term. Maybe even the Maori Party as primary coalition party with the Greens as number two.

Kwaka, you KNOW the answer to your question. You knew it before you asked.

[RantyDave]

Move some of the tax away from company tax and onto capital gains? Sounds awesome. Do it now.

Dave

[Hitcher]

Capital gains tax? Political suicide. Enforcement would be ponderous as there are too many ways to avoid it.

[NDORFN]

It's a bit late for that. The housing boom is over.

[discotex]

It's a bit late for that. The housing boom is over.

Surely the point is to prevent another housing bust.......

That's most common sense I've seen from treasury ever. Less personal tax, less company tax, more GST and capital gains. That means you get more bang for buck personally in every way unless you save by borrowing to buy houses. Exactly what this economy needs!

[The Stranger:Me]

Interesting to see who really pays for a capital gains tax.
The same people who pay all tax, those who can least afford it, low to middle income earners.

So I have an investment property, it is currently rented well below market value. I rely upon the capital gain for a return. They introduce a capital gain tax and I will be looking for top dollar on my rent instead, as will all other investors.
What effect will this have on rents?
How will increasing rents help the people looking for a first home? They have enough problems now without having to cover my tax burden for me.

Currently about 35% of our housing stock is rental. Not that long ago (about 30yrs if I recall correctly) that figure was 10%.
It doesn't make sense to fuck with that many people's lives.

That said, the cynic in me says that National are unlikely to introduce a tax in which many of them would be caught themselves.

[NDORFN]

Surely the point is to prevent another housing bust.......

That's most common sense I've seen from treasury ever. Less personal tax, less company tax, more GST and capital gains. That means you get more bang for buck personally in every way unless you save by borrowing to buy houses. Exactly what this economy needs!

Sure but such a massive number of middle-income consumers (the one's most likely to be making the personal tax gains) have a mortgage [edit] or pay rent. So it'll just punish the people it's suppose to help and end up cutting even.

[NDORFN]

Interesting to see who really pays for a capital gains tax.
The same people who pay all tax, those who can least afford it, low to middle income earners.

So I have an investment property, it is currently rented well below market value. I rely upon the capital gain for a return. They introduce a capital gain tax and I will be looking for top dollar on my rent instead, as will all other investors.
What effect will this have on rents?
How will increasing rents help the people looking for a first home? They have enough problems now without having to cover my tax burden for me.

Currently about 65% of our housing stock is rental. Not that long ago (about 30yrs if I recall correctly) that figure was 10%.
It doesn't make sense to fuck with that many people's lives.

That said, the cynic in me says that National are unlikely to introduce a tax in which many of them would be caught themselves.

Exactly

[Hitcher]

"Capital gains" should only be taxed once they are realised as income.

This raises some interesting issues about the taxation treatments applied to superannuation investments.

[James Deuce]

Surely the point is to prevent another housing bust.......

That's most common sense I've seen from treasury ever. Less personal tax, less company tax, more GST and capital gains. That means you get more bang for buck personally in every way unless you save by borrowing to buy houses. Exactly what this economy needs!

It will create empty properties and over crowded poverty filled state house ghettos. The bias has swung too far toward rental properties for CGT to work for long. People just scraping by with one rental property will simply stop paying the mortgage on the rental. It's not good sense, it's a mild panic that if Australia cuts company tax again, then NZ businesses will just bugger off over the ditch as they should have years ago.

National are left floundering trying to keep both our economy and local businesses viable thanks to Labour's anti-business practices, and this will be one of the options Treasury want to make public so it can be shot down and replaced with something more insidious like 15% GST.

[NDORFN]

I like that thinking Hitcher. I the IRD ever upgrade thier systems they could administer superannuation back to senior citizens (or just not take it off them in the first place).

[cowpoos]

I wonder if they'll provide a tax rebate if property values fall....

You don't get a hand out from IRD when if your bussiness makes a loss...why would they give you money if your house makes a loss??

I don't understand peoples thinking on this....

[Flatcap]

At the risk of agreeing with someone sporting a beard, the idea has some merit, particularly if it results in greater investment in productive export industries.